3rd Quarter Results

    RNS Number : 1411I
  Research Pharmaceutical SRV, Inc
  14 November 2008
   

    14th November 2008

    ReSearch Pharmaceutical Services, Inc.
    Unaudited Quarterly Report for the period ended September 30, 2008

    ReSearch Pharmaceutical Services, Inc.("RPS" or the "Company"), a leading provider of integrated clinical development outsourcing
solutions to the bio-pharmaceutical industry, is pleased to announce its unaudited third quarter results for the three month period ended
September 30, 2008. These statements include unaudited comparative results for RPS which merged with Cross Shore Acquisition Corporation
("Cross Shore") on August 30, 2007.

    In addition, RPS announces that it has today filed a Form 10-Q in the U.S., as required by the Securities and Exchange Commission
("SEC"). A copy of the Form 10-Q is available on our website (www.rpsweb.com).

    Financial highlights for the nine months ended September 30, 2008

    *     Service revenues for the nine months ended September 30, 2008 of $117.4 million grew $31.6 million or 36.9% as compared to the
same period in 2007.
    *     EBITDA for the nine months ended September 30, 2008 of $6.8 million grew $1.6 million or 31% as compared to the same period in
2007.  
    *     Net income before provision for income taxes for the nine months ended September 30, 2008 of $5.6 million grew $7.0 million as
compared with net loss before benefit for income taxes of $1.4 million for the same period in 2007.
    *     Net income of $3.2 million for the nine months ended September 30, 2008 grew $1.4 million when compared to net income of $1.8
million for the same period in 2007.

    Financial highlights for the three months ended September 30, 2008

    *     Service revenues for the third quarter of 2008 of $39.1 million grew $8.2 million or 26.5% as compared to the same period in
2007.
    *     EBITDA for the third quarter of 2008 of $1.7 million grew $0.1 million or 5% as compared to the same period in 2007.  
    *     Net income before provision for income taxes for the third quarter of 2008 of $1.3 million grew $1.2 million or 73% as compared
with net income before provision for income taxes of $17,000 for the same period in 2007.
    *     Net income of $0.7 million for the three months ended September 30, 2008 grew $0.7 million from a net loss of $20,000 in the same
period in 2007.
    *     As of September 30, 2008 the Company had approximately $9.3 million in cash plus $15 million of unused bank line availability.

    A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP measure are located at the end of
this press release.

    Operational highlights

    The third quarter of 2008 results demonstrate the continuing growth of the Company over 2007, reflecting the addition of new business
wins as well as growth within existing client programs.

    During the third quarter, the Company continued to invest in its core clinical infrastructure to further strengthen its position as a
leading provider of integrated, flexible solutions, prepare for our continued global expansion, and expand our full-service project
capabilities in support of growing client demand. We expect that these investments will fuel our continued growth and lead to greater
opportunities in the future.

    Commenting on the third quarter results, Daniel M. Perlman, Chairman and CEO of RPS said:

    "Growth in 2008 compared to 2007 continued into the third quarter as a result of new and existing client programs. We will continue our
focus on expanding our global footprint to facilitate future growth in revenues and profitability."

    For further information please contact:
 ReSearch Pharmaceutical Services, Inc.                       [phone]
 Dan Perlman, Chief Executive Officer
 Steven Bell, Chief Financial Officer

 Nominated Adviser and UK Broker:                             [phone]
 Arbuthnot Securities Limited
 James Steel / Richard Tulloch    




    ReSearch Pharmaceutical Services, Inc.
    Unaudited Quarterly Report to September 30, 2008

    Background on RPS

    ReSearch Pharmaceutical Services, Inc. ("RPS" or the "Company") was incorporated in Delaware on January 30, 2006 as Cross Shore
Acquisition Corporation ("Cross Shore"), a blank check company formed to serve as a vehicle for the acquisition of a then unidentified
operating business engaged in the delivery of business services to consumers and companies in the United States. On April 24, 2006 Cross
Shore consummated its initial public offering on the Alternative Investment Market ("AIM") of the London Stock Exchange, and on April 26,
2007, entered into an Agreement and Plan of Merger (the "Merger Agreement") with ReSearch Pharmaceutical Services, Inc. ("Old RPS"). Upon
the completion of the merger with Old RPS on August 30, 2007, Cross Shore changed its name to ReSearch Pharmaceutical Services, Inc. Prior
to the merger with Old RPS, Cross Shore had no operating business other than searching for an acquisition target.

    Headquartered in Ft. Washington, Pennsylvania, with subsidiary offices across Latin America, RPS is a next generation CRO and a leading
provider of integrated clinical development outsourcing solutions to the bio-pharmaceutical industry. RPS provides services in connection
with the design, initiation and management of clinical trials programs that are required to obtain regulatory approval to market
bio-pharmaceutical products.  Our innovative business model combines the expertise of a traditional CRO with the ability to provide flexible
outsourcing solutions that are fully integrated within our clients' clinical drug development infrastructure. This approach was designed to
meet the varied needs of small, medium and large bio-pharmaceutical companies.

    Operating review of the nine months ended September 30, 2008 compared to nine months ended September 30, 2007

    *     Revenues. Service revenues increased 36.9% to $117.4 million for the nine months ended September 30, 2008 from $85.8 million for
the nine months ended September 30, 2007 as we generated additional business from existing and new customers. The majority of the increase
is related to the continued build from existing contracts with several pharmaceutical companies in our Clinical Master Service Provider
("CMSP") programs. CMSP revenue for the nine months ended September 30, 2008 grew 68.6% over the comparable prior period, and accounted for
62.1% of our total service revenue for the nine months ended September 30, 2008. 

    Reimbursement revenues and offsetting reimbursable out-of-pocket costs fluctuate from period to period due primarily to the level of
pass-through expenses in a particular period. Reimbursement revenues and reimbursable out-of-pocket costs increased 29.3% to $13.2 million
during the nine months ended September 30, 2008 from $10.2 million during the nine months ended September 30, 2007. The increase is due
primarily to an increase in the number of staff incurred expenses on client programs.

    *     Direct Costs. Direct costs increased 41.2% to $87.9 million or 74.9% of service revenues for the nine months ended September 30,
2008 as compared to $62.3 million or 72.6% of service revenues for the nine months ended September 30, 2007. The increase in direct costs is
directly correlated with the increase in revenues as described above, as well as an increase in certain direct costs at a rate greater than
the increase in revenues, which are related to the additional infrastructure to support future growth. The primary costs included in direct
costs are operational staff payroll and related taxes and benefits.

    *     Selling, general and administrative expenses. Selling, general and administrative expenses ("SG&A") increased 24.1% to $22.7
million for the nine months ended September 30, 2008 from $18.3 million for the nine months ended September 30, 2007 to support the increase
in revenues. The primary reason for the increase in SG&A costs was an increase in the number of corporate personnel, which resulted in
increases in employee related costs such as new salaries, as well as increases in salaries for existing employees, bonuses, commissions,
health benefits and payroll taxes to $14.0 million for the nine months ended September 30, 2008 as compared to $12.1 million for the nine
months ended September 30, 2007. Additionally, due to our increasing global footprint we saw an increase in rent and travel expense to $2.6
million for the nine months ended September 30, 2008 as compared to $1.9 million for the nine months ended September 30, 2007, and due to
our public company filing status in the US and on the AIM we saw increases to our insurance premiums, licenses and professional fees to $2.3 million for the nine months ended September 30, 2008 as
compared to $1.4 million for the nine months ended September 30, 2007. Although total SG&A expenses increased for the nine month period
ended September 30, 2008, SG&A expenses, as a percentage of service revenues, decreased to 19.3% for the nine months ended September 30,
2008 as compared to 21.4% for the nine months ended September 30, 2007. The decrease is attributable to our ability to leverage fixed
infrastructure costs and contain semi-variable overhead costs at a slower rate of growth than revenues. 

    *     Depreciation and amortization expense. Depreciation and amortization expense increased 71.9% to $1.2 million for the nine months
ended September 30, 2008 as compared to $0.7 million for the nine months ended September 30, 2007 due primarily to an increase in the
depreciable asset base. 

    *     Income from operations. Income from operations increased to $5.5 million for the nine months ended September 30, 2008 as compared
to income from operations of $4.5 million for the nine months ended September 30, 2007. The increase is attributable to growth in revenues
in excess of the corresponding growth in direct costs and SG&A costs as described above.

    *     Interest income and expense. Interest income increased to $0.3 million during the nine months ended September 30, 2008 due to an
increase in the level of investable cash on hand subsequent to the August 30, 2007 merger with Cross Shore. Interest expense decreased to
$0.2 million for the nine months ended September 30, 2008 from $6.0 million during the nine months ended September 30, 2007. The decrease is
due to the payoff of the outstanding balance on our line of credit and the outstanding notes payable subsequent to the merger with Cross
Shore on August 30, 2007. Interest expense from the nine months ended September 30, 2007 includes a $4.7 million non-cash charge to mark our
put warrant liability to market during the period. The put warrants were exchanged for shares of Cross Shore common stock in connection with
the Cross Shore merger on August 30, 2007.

    *     Provision for income taxes. The provision for income taxes for the nine months ended September 30, 2008 increased to $2.3 million
versus a benefit of $3.2 million for the nine months ended September 30, 2007. Our effective tax rate for the nine months ended September
30, 2007 was significant as the interest charge related to the put warrant liability is non-deductible for income tax purposes. Accordingly,
the income tax benefit recorded in the nine months ended September 30, 2007 is reflective of that rate. The provision for income taxes
recorded during the nine months ended September 30, 2008 is reflective of our recurring effective tax rate. 

    *     Net income.  As a result of the factors discussed above, net income for the nine months ended September 30, 2008 increased to $3.2
million or $0.10 per basic share and $0.09 per diluted share, from net income of $1.8 million for the nine months ended September 30, 2007
or $0.17 per basic share and $0.09 per diluted share. 

    Operating review of the three months ended September 30, 2008 compared to three months ended September 30, 2007

    *     Revenues. Service revenues increased 26.5% to $39.1 million for the three months ended September 30, 2008 from $30.9 million for
the three months ended September 30, 2007 as we generated additional business from existing and new customers. The majority of the increase
is related to the continued build from existing contracts with several pharmaceutical companies in our CMSP programs. CMSP revenue for the
three months ended September 30, 2008 grew 52.6% over the comparable prior period, and accounted for 64.0% of our total service revenue for
the three months ended September 30, 2008. 

    Reimbursement revenues and offsetting reimbursable out-of-pocket costs fluctuate from period to period due primarily to the level of
pass-through expenses in a particular period. Reimbursement revenues and reimbursable out-of-pocket costs increased 48.2% to $4.9 million
during the three months ended September 30, 2008 from $3.3 million during the three months ended September 30, 2007. The increase is due
primarily to an increase in the number of staff incurred expenses on client programs.

    *     Direct Costs. Direct costs increased 30.6% to $29.6 million or 75.6% of service revenues for the three months ended September 30,
2008 as compared to $22.6 million or 73.2% of service revenues for the three months ended September 30, 2007. The increase in direct costs
is directly correlated with the increase in revenues as described above, as well as an increase in certain direct costs at a rate greater
than the increase in revenues, which are related to the additional infrastructure to support future growth. The primary costs included in
direct costs are operational staff payroll and related taxes and benefits.

    *     Selling, general and administrative expenses. SG&A increased 17.7% to $7.8 million for the three months ended September 30, 2008
from $6.7 million for the three months ended September 30, 2007 to support the increase in revenues. The primary reason for the increase in
SG&A costs was an increase in the number of corporate personnel, which resulted in increases in employee-related costs such as new salaries,
as well as increases in salaries for existing employees, bonuses, commissions, health benefits and payroll taxes to $4.9 million for the
three months ended September 30, 2008 as compared to $4.5 million for the three months ended September 30, 2007. Additionally, due to our
increasing global footprint we saw an increase in rent and travel expense to $0.8 million for the three months ended September 30, 2008 as
compared to $0.7 million for the three months ended September 30, 2007, and due to our public company filing status in the US and on the AIM
we saw increases to our insurance premiums, licenses and professional fees to $0.7 million for the three months ended September 30, 2008 as compared to $0.5 million for the three months
ended September 30, 2007. Although total SG&A expenses increased for the three month period ended September 30, 2008, SG&A expenses, as a
percentage of service revenues, decreased to 20.1% for the three months ended September 30, 2008 as compared to 21.6% for the three months
ended September 30, 2007. The decrease is attributable to our ability to leverage fixed infrastructure costs and contain semi-variable
overhead costs at a slower rate of growth than revenues. 

    *     Depreciation and amortization expense. Depreciation and amortization expense increased 45.0% to $0.4 million for the three months
ended September 30, 2008 as compared to $0.3 million for the three months ended September 30, 2007 due primarily to an increase in the
depreciable asset base. 

    *     Income from operations. Income from operations remained consistent at $1.3 million for the three months ended September 30, 2008
when compared to the three months ended September 30, 2007. The flat income from operations is attributable to higher direct and SG&A costs
during the three months ended September 30, 2008 which offset the growth in revenues as described above.

    *     Interest income and expense. Interest income decreased to $94,000 during the three months ended September 30, 2008 from interest
income of $108,000 during the three months ended September 30, 2007 due primarily to a decrease in interest rates. Interest expense
decreased to $91,000 for the three months ended September 30, 2008 from $1.4 million during the three months ended September 30, 2007. The
decrease is due to the payoff of the outstanding balance on our line of credit and the outstanding notes payable subsequent to the merger
with Cross Shore on August 30, 2007. Interest expense for the three months ended September 30, 2007 included a $0.9 million non -cash charge
to mark our put warrant liability to market during the period. The put warrants were exchanged for common stock in connection with the Cross
Shore merger on August 30, 2007.

    *     Provision for income taxes. The provision for income taxes for the three months ended September 30, 2008 increased to $0.5 million
as compared to a provision for income taxes of $40,000 for the three months ended September 30, 2007. Our effective tax rate for the three
months ended September 30, 2007 was significant as the interest charge related to the put warrant liability incurred in the first quarter of
2007 was non-deductible for income tax purposes. Accordingly, the income tax expense recorded in the three months ended September 30, 2007
is reflective of that rate. The provision for income taxes recorded during the three months ended September 30, 2008 is reflective of our
recurring effective tax rate. 

    *     Net income (loss).  As a result of the factors discussed above, net income for the three months ended September 30, 2008 increased
to $0.7 million or $0.02 per basic and diluted share, from a net loss of $20,000 for the three months ended September 30, 2007 or $(0.01)
per share, basic and diluted. 

    Balance Sheet and Cash Flow

    We maintain a working capital line of credit with a bank, with a maximum potential borrowing capacity of $15.0 million. At September 30,
2008, there were no outstanding borrowings under this facility. Interest on outstanding borrowings under this facility is at the bank's
prime rate (5.00% at September 30, 2008). The credit facility contains various financial and other covenants, including a prohibition on
paying dividends or distributions (other than dividends or distributions payable in our stock). At September 30, 2008, we were in compliance
with these covenants. The facility is secured by all of our corporate assets. At September 30, 2008, we had available cash and cash
equivalent balances of $9.3 million and working capital of $34.6 million, which we believe will provide sufficient liquidity for the next
twelve months.

    During the nine months ended September 30, 2008, our operating activities used cash of $0.4 million, a decrease of $7.8 million from the
corresponding amount for the nine months ended September 30, 2007. Cash provided by operating activities during the nine month period ended
September 30, 2008 can be attributed to net income of $3.2 million, supplemented by non-cash charges for depreciation of $1.2 million, and
stock based compensation of $0.4 million, an increase in accounts payable of $18,000, an increase in other assets of $22,000 and a decrease
in other liabilities of $25,000. 

    These sources of cash were offset by the use of cash in other operating assets and liabilities of $5.4 million consisting primarily of a
decrease of $1.6 million in deferred revenue, a decrease of $0.3 million in customer deposits, an increase in prepaid expenses and other
current assets of $0.4 million, an increase of $0.6 million in our income taxes payable/recoverable, a decrease in accrued expenses of $0.5
million, and by an increase in accounts receivable, net of allowance for doubtful accounts of $1.9 million, or 5.9%, to $34.0 million at
September 30, 2008 from $32.1 million at December 31, 2007 primarily related to the timing of cash collections. 

    Cash used in investing activities for the nine months ended September 30, 2008 totaled $0.8 million, consisting primarily of the
increase in restricted cash of $0.3 million and the purchase of property and equipment totaling $1.1 million.

    Cash used in financing activities for the nine months ended September 30, 2008 totaled $0.5 million, consisting primarily of principal
payments on capital lease obligations of $0.5 million.

    SEC Filings

    RPS has today filed with the United States Securities and Exchange Commission a quarterly report on Form 10-Q, which details the
Company's business operations along with detailed financials statements. 

    Further details relating to RPS, its operations and its accounting and operating policies, are set out in the Form 10-Q, copies of which
can be obtained from the Company's website at www.rpsweb.com.

    Supplemental non-GAAP financial information
    EBITDA is defined as net income (loss) before interest expense, income taxes and depreciation and amortization.  We believe that net
income is the most directly comparable GAAP measurement to EBITDA. EBITDA is presented because we believe it is useful to investors as a
widely accepted financial indicator of a company's ability to service and/or incur indebtedness and because such disclosure provides
investors with additional criteria we use to evaluate our operating performance and the performance bonuses of certain of our employees.
EBITDA is not defined under GAAP, should not be considered in isolation or as a substitute for a measure of our liquidity or performance
prepared in accordance with GAAP and is not indicative of income from operations as determined under GAAP. EBITDA and other non-GAAP
financial measures have limitations which should be considered before using these measures to evaluate our liquidity or financial
performance. EBITDA does not include interest expense, income tax expense or depreciation and amortization expense, which may be necessary in evaluating our operating results and liquidity requirements or those of
businesses we may acquire.  Our management compensates for these limitations by using EBITDA as a supplement to GAAP results to provide a
more comprehensive understanding of the factors and trends affecting our business or any business we may acquire. Our computation of EBITDA
and Adjusted EBITDA may not be comparable to other similarly titled measures provided by other companies, because not all companies
calculate this measure in the same fashion.  

    The following table and related notes reconciles net income (loss) to EBITDA:

                                      (in thousands)             (in thousands)
                                    Three months ended         Nine months ended
                                       September 30,             September 30,
                                     2008           2007        2008        2007
                                                                        
 Reconciliation of net income (loss) to                                 
 EBITDA:                                                                
                                                                        
 Net income (loss)                       $748        $(22)     $3,224      $1,825 
 Provision (benefit) for income           518          40       2,341      (3,240)
 taxes                                                                  
 Interest (income) expense, net            (3)      1,302         (25)      5,872 
 Depreciation and amortization            449         310       1,233         717 
 EBITDA                                $1,712      $1,630      $6,773      $5,174 


    Daniel M. Perlman, Chairman and CEO
    November 13, 2008


    Financial Data
    ReSearch Pharmaceutical Services, Inc. and Subsidiaries
    Consolidated Balance Sheets
                                                September 30,    December 31,
                                                     2008            2007
 Assets                                          (unaudited)
 Current assets:
 Cash and cash equivalents                        $ 9,318,017    $ 11,060,255 
 Restricted cash                                    1,014,722       1,321,877 
 Accounts receivable, less allowance for           34,015,109      32,117,662 
 doubtful accounts of $594,000 at September
 30, 2008 and $547,000 at December 31, 2007.
 Prepaid expenses and other current assets          2,070,540       1,671,674 
 Total current assets                            $ 46,418,388    $ 46,171,468 

 Intangible assets, net                               275,536         275,536 
 Property and equipment, net                        4,247,570       3,343,371 
 Other assets                                         231,546         253,471 
 Deferred tax asset                                   375,173         375,173 
 Total assets                                    $ 51,548,213    $ 50,419,019 

 Liabilities and stockholders' equity
 Current liabilities:
 Accounts payable                                  $1,460,854      $1,442,881 
 Accrued expenses                                   5,359,178       6,489,902 
 Customer deposits                                  1,014,722       1,321,877 
 Deferred revenue                                   3,385,591       5,026,042 
 Current portion of capital lease obligations         579,636         536,106 
 Total current liabilities                       $ 11,799,981    $ 14,816,808 

 Customer deposits                                  4,500,000       4,500,000 
 Other liabilities                                    284,001         258,860 
 Capital lease obligations, less current              883,538         414,002 
 portion
 Total liabilities                               $ 17,467,520    $ 19,989,670 


 Stockholders' equity:
 Common stock, $.0001 par value:                                        3,220 
 Authorized shares - 150,000,000 at September           3,255 
 30, 2008 and December 31, 2007, issued and
 outstanding shares - 32,547,406 and
 32,199,223 at September 30, 2008 and December
 31, 2007, respectively.
 Additional paid-in capital                        36,478,621      36,078,600 
 Accumulated other comprehensive income                77,220          50,305 
 Accumulated deficit                               (2,478,403)     (5,702,776)
 Total stockholders' equity                      $ 34,080,693    $ 30,429,349 
 Total liabilities and stockholders' equity      $ 51,548,213    $ 50,419,019 


    ReSearch Pharmaceutical Services, Inc. and Subsidiaries
    Consolidated Statements of Operations

                                  Three Months Ended September     Nine Months Ended September 30,
                                              30,                

                                      2008            2007              2008             2007
                                          (unaudited)                        (unaudited)
                                                                 
 Service revenue                  $ 39,113,267    $ 30,931,219      $ 117,447,462    $ 85,784,651 
 Reimbursement revenue               4,900,378       3,306,979         13,249,875      10,244,852 
   Total revenue                    44,013,645      34,238,198        130,697,337      96,029,503 
                                                                 
 Direct costs                       29,555,433      22,634,128         87,948,270      62,291,458 
 Reimbursable out-of-pocket          4,900,378       3,306,979         13,249,875      10,244,852 
 costs                                                           
   Selling, general, and             7,845,537       6,668,230         22,725,789      18,319,060 
 administrative expenses                                         
   Depreciation and                    449,187         309,778          1,233,451         717,454 
 amortization                                                    
   Income from operations            1,263,110       1,319,083          5,539,952       4,456,679 
                                                                 
 Interest expense                       91,089       1,409,370            231,020       5,979,208 
 Interest income                        94,189         107,699            256,190         107,699 
 Net income before provision         1,266,210          17,412          5,565,122      (1,414,830)
 for income taxes                                                
 Provision (benefit) for income        517,971          39,874          2,340,750      (3,239,961)
 taxes                                                           
 Net income (loss)                   $ 748,239       $ (22,462)       $ 3,224,372     $ 1,825,131 
                                                                 
 Accretion of preferred stock                -         (78,419)                 -        (320,819)
 Net income (loss) applicable        $ 748,239      $ (100,881)       $ 3,224,372     $ 1,504,312 
 to common shares                                                
                                                                 
   Net income (loss) per common                                  
 share:                                                          
   Basic                                 $0.02          ($0.01)             $0.10           $0.17 
   Diluted                               $0.02          ($0.01)             $0.09           $0.09 
                                                                 
 Weighted average number of                                      
 common shares outstanding:                                      
 Basic                              32,547,406       8,621,880         32,507,708       8,621,880 
 Diluted                            34,049,551       8,621,880         34,069,060      19,316,161 


    ReSearch Pharmaceutical Services, Inc. and Subsidiaries
    Consolidated Statements of Cash Flows
                                              Nine Months Ending September 30,
                                                   2008             2007
                                                        (unaudited)
 Net income                                     $ 3,224,372       $ 1,825,131 
 Adjustments to reconcile net income to net
 cash provided by operating activities:
 Depreciation                                     1,233,451           465,328 
 Amortization of intangible assets                       -            252,126 
 Amortization of debt discount                           -            334,603 
 Interest charge related to put warrant                  -          4,723,451 
 liability
 Stock-based compensation                           413,771            53,091 
 Deferred tax benefit                                    -           (156,979)
 Changes in operating assets and
 liabilities:
 Accounts receivable                             (1,897,447)       (2,214,528)
 Income taxes payable/recoverable                  (591,439)       (3,936,120)
 Prepaid expenses and other current assets         (398,866)         (726,019)
 Other assets                                        21,926            44,103 
 Accounts payable                                    17,973          (995,835)
 Accrued expenses                                  (544,071)        1,613,254 
 Customer deposits                                 (307,155)        4,452,895 
 Deferred revenue                                (1,640,451)        1,328,440 
 Other liabilities                                   25,141           266,474 
 Net cash (used in) provided by operating          (442,795)        7,329,415 
 activities

 Investing activities
 Change in restricted cash                          307,155            47,105 
 Purchase of property and equipment              (1,128,412)       (1,337,390)
 Net cash used in investing activities             (821,257)       (1,290,285)

 Financing activities
 Net repayments on lines of credit                        -        (8,991,544)
 Principal payments on capital lease               (496,172)          (82,552)
 obligations
 Purchase of treasury shares                              -          (172,909)
 Merger consideration, net of fees paid             (17,880)       51,363,299 
 Distribution to stockholders                             -       (20,000,000)
 Payment of preferred stock dividends                     -        (2,627,334)
 Proceeds from the exercise of stock options          8,951             6,748 
 Payment of note payable                                  -        (4,500,000)
 Net cash (used in) provided by financing          (505,101)       14,995,708 
 activities
 Effect of exchange rates on cash and cash           26,915            36,460 
 equivalents
 Net change in cash and cash equivalents         (1,742,238)       21,071,298 
 Cash and cash equivalents, beginning of         11,060,255           197,024 
 period
 Cash and cash equivalents, end of period       $ 9,318,017      $ 21,268,322 

 Supplemental disclosures of cash flow
 information
 Cash paid during the period for:
 Interest                                        $  231,020         $ 921,154 
 Income taxes                                   $ 2,924,777         $ 853,000 
 Supplemental disclosures of noncash
 financing activities
 Accretion of preferred stock dividends                $ -          $ 320,819 
 Acquisition of fixed assets under capital      $ 1,211,158       $ 1,002,624 
 leases


    NOTES

    The unaudited results contained herein reflect the operations of RPS only and do not contain any operating results for Cross Shore.
Comparative results for 2007 reflect the results of Old RPS prior to its merger with Cross Shore.

    The functional currency of RPS is U.S. dollars because that is the currency of the primary economic environment in which the company
operates. These unaudited financial statements are presented in U.S. dollars.

    The unaudited financial statements are presented in conformity with accounting principles generally accepted in the United States and
have been prepared using the same accounting policies as set forth in the financial statements for the year ended December 31, 2007.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
    This document contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by words such as "anticipates", "intends", "plans", "seeks", "believes", "estimates", "expects"
and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on the
Company's current expectations and assumptions regarding its business, financial condition, the economy and other future conditions. Because
forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. The Company's actual results may differ materially from those contemplated by the
forward-looking statements. The Company cautions you therefore that you should not rely on any of these forward-looking statements as
statements of historical fact or as guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional,
national or global political, economic, business, competitive, market and regulatory conditions including: our ability to identify
liabilities associated with RPS; our ability to manage pricing and operational risks; our ability to manage foreign operations; changes in
technology; and our ability to acquire or renew contracts. Any forward-looking statement made in this document speaks only as of the date on
which it is made. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not
possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement,
whether as a result of new information, future developments or otherwise, unless otherwise required to do so by law or regulation.

This information is provided by RNS
The company news service from the London Stock Exchange
 
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